Metronet ‘to Enter Administration on Wednesday’

The Guardian newspaper has reported that troubled tube contractor Metronet is “expected to file for administration tomorrow”.

According to the paper Ernst & Young are expected to start a sale of the PPP contracts if they’re relinquished by the company.

A Metronet spokesman told MayorWatch they were unable to comment on the claims.

On Monday the company failed to secure an increase in the money paid to it by London Underground. Chris Bolt, the statutory Arbiter for the London Underground PPP Agreements, decided that the ISC will increase by just £121 million over the next 12 months.

The company had originally sought an increase of up to £400 million which it later revised to £551 million. Transport for London which pays the ISC, had suggested no increase.

Yesterday Bombardier became the third shareholder to write off its investment in the firm after WS Atkins and Balfour Beatty last month wrote off more than 220 million pounds.